Embattled Developer Sunac Wins Creditor Nod for Offshore Debt Swap
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Sunac's debt restructuring plan was approved by 98.5% of the 1,492 participating creditors.
Sunac China Holdings Ltd. has secured overwhelming approval from creditors for its second offshore debt restructuring plan, a crucial step toward converting nearly $9.6 billion in debt into equity and resolving its long-running debt crisis.
In a meeting held in Hong Kong on Oct. 14, the plan was approved by 98.5% of the 1,492 participating creditors, who represent about 94.5% of the total debt value, the company announced that evening. Sunac needed support from creditors holding at least 75% of the debt’s value for the plan to proceed.
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- Sunac China secured 98.5% creditor approval to convert $9.6 billion of offshore debt into equity, pending a Hong Kong court ruling on Nov. 5.
- This marks Sunac’s second major restructuring, following an earlier $10.2 billion deal in 2023, amid ongoing industry distress.
- Successful restructurings could reduce Sunac’s debt by nearly 70 billion yuan ($9.8 billion) and save billions in annual interest, as debt-for-equity swaps become common in China’s property sector.
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Who’s Who
- Sunac China Holdings Ltd.
- 融创中国控股有限公司 (Sunac China Holdings Ltd.) secured overwhelming creditor approval for its second offshore debt restructuring plan, aiming to convert nearly $9.6 billion in debt to equity. This follows an initial 2023 restructuring and seeks to resolve its long-running debt crisis amidst China's property downturn. If approved by the Hong Kong High Court, this deal will effectively wipe out Sunac's offshore debt.
- Country Garden
- Country Garden is mentioned as one of the developers utilizing debt-for-equity swaps in their restructuring plans. This indicates that Country Garden, similar to other distressed Chinese real estate firms, has been involved in an effort to restructure its debt amidst the ongoing property downturn in China.
- Logan Group
- Logan Group is one of the Chinese developers that has included debt-for-equity swaps as a standard feature in its restructuring plans. This approach is becoming common among distressed Chinese real estate firms trying to resolve debt crises.
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What Happened When
- In the first half of 2022：
- Sunac defaulted on its publicly-traded bonds amid a nationwide property downturn.
- November 2023：
- Sunac completed an initial restructuring of $10.2 billion of offshore debt, cutting its obligations by $4.5 billion.
- January 10, 2025：
- A creditor filed a winding-up petition in Hong Kong against Sunac over $30 million in principal.
- By early August 2025：
- 16 of 42 developers that disclosed restructuring plans had completed them in part or full, with 8 deals approved in 2025, according to a CRIC report.
- April 17, 2025：
- Sunac proposed a new plan to convert approximately $9.6 billion of its remaining offshore debt into two types of mandatory convertible bonds.
- October 14, 2025：
- Sunac's second offshore debt restructuring plan was approved by 98.5% of 1,492 participating creditors in a meeting in Hong Kong.
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